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What happens if Alternate Payee dies?
Posted: Fri Mar 02, 2018 12:42 am
Under a defined benefit pension plan can an alternate payee's share of the benefits be given to alternate payee’s beneficiary or estate in the event of the alternate payee's death?
Re: What happens if Alternate Payee dies?
Posted: Fri Mar 02, 2018 1:27 am
Generally no. If the alternate payee dies before alternate payee elects to commence benefits in accordance with the terms of the QDRO, no benefits may become payable to alternate payee’s beneficiary or estate. Even if the QDRO includes language that provides for payments to be made to the beneficiary or estate of the alternate payee, it will be rejected by the Plan Administrator.
If the alternate payee dies after alternate payee’s benefit commencement date and if alternate payee elected a form of benefit payment that provides for continued payments to a designated beneficiary in the event of alternate payee’s death, then such payments will be made to such beneficiary following alternate payee’s death.